Finland targets wholesale monopoly reform with Lottery Act proposals
Government aims to strengthen Veikkaus monopoly despite calls for licensing from international operators
Finland’s Ministry of the Interior has launched a consultation on wholesale reform of the Finnish Lotteries Act which would allow monopoly operator Veikkaus to operate B2B activities for the first time.
The consultation, which includes measures to strengthen the existing Veikkaus monopoly, would allow the firm to establish a subsidiary to provide gambling products and other related services to external companies.
The subsidiary would not be allowed to provide gambling services to consumers.
Proposals follow a review of existing rules by a broad-based working group operating in conjunction with the ministry. The consultation also proposes tough new rules relating to marketing, payments blocking and new identification verification requirements.
Under the proposals, new specific rules would be introduced prohibiting the marketing of certain types of gambling, including slot machines, based on the likelihood of them causing harm to players.
Sports betting and tote betting would be predominantly exempted from this change.
In respect of TV and print advertising, the Lotteries Act would be reformed to include obligations to provide information on the age limit for gambling, services providing help and assistance to gamblers and self-exclusion.
The consultation includes proposals to introduce administrative penalties for any marketing found to be violating the Lotteries Act, with the National Police Board given powers to prohibit private individuals from marketing gambling-related services.
In addition to strengthening advertising powers, other reforms include the introduction of payment blocking measures on operators working outside of the monopoly system.
To facilitate enforcement, the National Police Board would maintain a blacklist of international gambling operators that target Finland and would block their payment transactions with banks.
In respect of toughened measures on identity verification, the consultation includes provisions governing the use of game and player data gained by Veikkaus as a result of direct verification of players.
Under this agreement, Veikkaus would have the right to use the data for responsible gambling purposes, for example addressing individual cases of harmful gambling, with the Ministry of Social Affairs and Health and the Finnish Institute for Health and Welfare also granted access.
“The proposal includes a number of different measures to prevent the harm caused by gambling and any gambling activities that violate the Lotteries Act,” Finnish Minister of the Interior Maria Ohisalo said.
“An example of such measures is placing game machines in a way that reduces the harm caused by gambling to vulnerable persons in particular.
“The proposal will also help secure the gambling monopoly in Finland in line with the government programme. It is a package where different elements complement one another,” she added.